The High Court of Australia handed down its decision in ASIC v Web3 Ventures (trading as Block Earner), finding that Block Earner’s former Earner product was a financial product under the Corporations Act.
The matter will now be remitted to the Full Court of the Federal Court to determine whether Block Earner should be liable to pay a penalty and, if so, what penalty should apply.
The Earner product was closed in 2022, before proceedings commenced. The case does not relate to Block Earner’s current or future products, including its crypto-backed lending activities under its recently granted Australian Credit Licence.
It acknowledged the High Court’s decision, which concerns the statutory interpretation of financial product definitions under the Corporations Act.
Charlie Karaboga, Co-founder and CEO of Block Earner, said, “We acknowledge the High Court’s decision and will continue to engage constructively with ASIC and the regulatory process.”
“We continue to believe that legal clarity for Australia’s digital asset sector should come through proper legislative reform, not retrospective litigation,” Karaboga said.
“It is unfortunate that such significant questions about the application of financial services law to digital assets have had to be tested through enforcement against a small, innovative Australian startup,”
“We’re excited about the future and remain committed to ongoing regulatory engagement and to contributing to the development of fair, forward-looking financial services laws in Australia.” said Karaboga
Case Background
In April 2025, the Full Federal Court ruled that Earner, a fixed-yield product that Block Earner voluntarily closed in 2022, was not a financial product, including a financial investment facility or derivative.
The High Court has now overturned that decision.
There has been no finding of customer loss, dishonesty, or misconduct.
Block Earner’s Regulated Lending Pathway
As an AUSTRAC-registered provider and recently a Australian Credit Licence holder, Block Earner has built its platform on a foundation of regulatory alignment, transparency and user empowerment, delivering innovative financial solutions powered by digital assets and blockchain technology.
In May 2026, ASIC granted Block Earner an Australian Credit Licence, making it the first digital asset platform in Australia to be regulated to provide credit products under its own licence.
The milestone marked a significant step in the evolution of digital assets within Australia’s financial system, creating a regulated pathway for eligible customers to use digital assets as security for credit.
Block Earner now conducts its lending activities under its own Australian Credit Licence, enabling it to originate, underwrite and offer regulated credit products directly.
Previously, Block Earner operated as a credit representative of existing Australian Credit Licence holder, Mortgage Direct, under ASIC’s regulatory framework.
The licence includes the appointment of Charlie Karaboga and James Coombes as Responsible Managers.
Separate from these legal proceedings, Block Earner will continue to progress its application for an Australian Financial Services Licence as part of its broader regulatory roadmap, ahead of the implementation of Australia’s Digital Assets Framework.
The reforms are expected to extend the financial services licensing framework to parts of the digital asset sector, consistent with Block Earner’s focus on operating within Australia’s regulated financial system.
